Life Insurance Coverage Calculator (How Much Cover You Need)

Most people buy a round number of life cover with no idea whether it is enough or far too much. This tool answers the prior question: how much cover do you actually need? It sizes the shortfall your family would face if your income stopped, after subtracting the savings and existing cover you already have. It is a needs estimate only: it does not price a policy and it does not estimate a premium, both of which require real underwriting.

The calculation is deliberately transparent. The need is income replacement (your annual income across the years you want it replaced) plus outstanding debts, plus future obligations such as children’s education. From that you subtract liquid savings and any life cover already in place (including cover embedded in an Israeli pension fund, keren pensia, which Olim often overlook). The gap, floored at zero, is the additional cover to consider. An optional toggle discounts the future income stream to today’s shekels for a more conservative figure.

For Olim there is a specific trap: a foreign-country term-life policy may lapse, become expensive, or fail to pay cleanly across borders after Aliyah, while an Israeli pension fund usually carries a death benefit you may not have counted. Enter what you genuinely have, not what you assume. Once you know the gap, take the number to a licensed insurance agent (sochen bituach), never from a calculator. For the household cash-flow side of the same question, the Monthly Budget Calculatorshows what your family’s expenses would actually be.